24 February 2020 Afternoon Session Analysis
Dollar tumbles amid shrinking U.S service sector.
The dollar index which traded against a basket of six major currency pairs have fell during early Asian session as recent data signalled potential trouble ahead of U.S economy. According to Markit Economics, service PMI have dropped to 49.4 in February, the lowest reading in six years. The data have triggering concerns towards the economy health as the service sector accounts for roughly 66% of total growth. At the same time, manufacturing PMI also fell to 50.8, lower than market expectation 51.5 which hinted the ongoing weakness in Manufacturing. The sign of weakness have since cause investors to sell the greenback. At the time of writing, dollar index slips 0.03% to 99.15.
In the commodities market, crude oil price also plummet 2.65% to $51.81 per barrel as of writing following increasing U.S oil rig count. According to reports from Baker Hughes, U.S. oil rig count continue to rose for a third week in a row even though the growth in the country slows as producers cut spending on new drilling for a second consecutive year. On the other hand, gold price soars 1.40% to $1666.10 at the time of writing following increase risk aversion sentiment amid the worsening coronavirus.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 17.00 | EUR – German IFO Business Climate (Feb) | 95.9 | 95.3 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior breakout below the previous support level 99.40. MACD which illustrate ongoing bearish momentum suggest the dollar to extend its losses towards the support level 98.90.
Resistance level: 99.40, 99.90
Support level: 98.90, 98.35
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance level 1.2960. MACD which illustrate diminishing bullish momentum suggest the pair to extend its retracement towards the support level 1.2865.
Resistance level: 1.2960, 1.3080
Support level: 1.2865, 1.2750
EURUSD, H4: EURUSD was traded lower following prior retracement from its high level. MACD which illustrate diminishing bullish momentum suggest the pair to extend its retracement towards the support level 1.0785.
Resistance level: 1.0885, 1.0990
Support level: 1.0785, 1.0680
USDJPY, H4: USDJPY was traded lower following prior retracement from the resistance level 112.10. MACD which illustrate bearish momentum signal with the formation of death cross suggest the pair to extend its retracement towards the support level 110.95.
Resistance level: 112.10, 113.15
Support level: 110.95, 110.20
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level 0.6595. However, MACD which illustrate diminishing bearish bias signal suggest the pair to experience a technical correction towards the resistance level 0.6675.
Resistance level: 0.6675, 0.6765
Support level: 0.6595, 0.6500
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level 0.6300. However, MACD which illustrate diminishing bearish momentum signal suggest the pair to experience a technical correction towards the resistance level 0.6385.
Resistance level: 0.6385, 0.6490
Support level: 0.6300, 0.6235
USDCAD, H4: USDCAD was traded higher while currently testing the resistance level 1.3260. MACD which illustrate bullish bias signal suggest the pair to extend its gain after it breaks above the resistance level.
Resistance level: 1.3260, 1.3325
Support level: 1.3170, 1.3095
USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level 0.9835. MACD which illustrate bearish momentum signal suggest the pair to extend its retracement towards the support level 0.9755.
Resistance level: 0.9835, 0.9915
Support level: 0.9755, 0.9695
CrudeOIL, H4: Crude oil was traded lower following prior breakout below the previous support level 52.55. MACD which illustrate ongoing bearish momentum suggest the commodity to extend its losses towards the support level 51.20.
Resistance level: 52.55, 54.20
Support level: 51.20, 49.55
GOLD_, H4: Gold price was traded higher following prior breakout above the previous resistance level 1646.30. MACD which illustrate ongoing bullish momentum signal suggest the commodity to extend its gains towards the resistance level 1676.90
Resistance level: 1676.90, 1717.10
Support level: 1646.30, 1613.35